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LONDON - World oil prices hit a fresh record high point of close to US$125 per barrel on Friday, extending this week's record run after OPEC insisted the market was well-supplied and driven by speculators.
New York's main oil futures contract, light sweet crude for June delivery, spiked to a historic US$124.73 per barrel at 0600 GMT in European deals.
But it eased later to US$124.24, a rise of 55 cents from the closing price in New York on Thursday.
London's Brent crude contract had hit an all-time pinnacle of US$124.25 in earlier Asian trading, but was later at US$123.68 for a gain of 84 cents from the close on Thursday.
"The oil market is so overwhelmingly bullish at this point ... it is looking at the 125-dollar mark as its next target," said Victor Shum, senior principal at Purvin and Gertz energy consultancy in Singapore.
The contract for London Brent oil was 84 cents higher at US$123.68.
Prices had bolted higher on Thursday after OPEC Secretary General Abdalla Salem El-Badri said that there was no shortage of crude oil, brushing aside US calls for higher output to dampen runaway prices.
"There is clearly no shortage of oil in the market," El-Badri said in a statement.
The 13-member Organisation of the Petroleum Exporting Countries (OPEC) produces about 40 percent of the world's oil, with current output at about 32 million barrels per day.
El-Badri also maintained OPEC's stance that oil market volatility has been driven by financial market developments and the increased flow of speculative funds into oil futures.
"The turmoil in some global equity markets and the considerable depreciation in the US dollar have encouraged investors to seek better returns in commodities, particularly in the crude oil futures market.
"This has driven prices higher," he added. - AFP/ir
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